Explore Some Valuable Tips for Single Moms to Manage Their Debts: Are you a single mom looking for effective ways to eliminate your debts? If you are having consumer debt, you know it already that you are not different from the rest. Most people especially, single moms are having consumer debt and as per U.S. Federal Reserve data American households are having on average $137,063 debt of which are $16883 credit card debt, $29,538 auto loans, 50,626 student loans and mortgages amounting to $182, 421. According to the reports presented by the Consumer Financial Protection Bureau, around 50 percent of all the credit bureau filings are supposed to be for medical debt. It is not uncommon to be in debt but it is abnormal to sit on your debts that go on accumulating. You need to focus on taking some proactive steps to manage and ultimately eliminate debt.
Explore Some Valuable Tips for Single Moms to Manage Their Debts
Table of Contents
Overpowering debts would be adversely impacting your mental health, relationships, career choices, and may end up ruining your life. A single mom finds it doubly difficult to deal with debt. You must constantly keep an eye on what you are spending and what you actually owe. Do not ignore your debt under any circumstances. Debt can never go away on its own. In fact, debt keeps on lingering and getting accumulated until it is beyond your control. It is best for single moms, who are often facing financial hardships, to do proper money and debt management so that they are able to shield their kids from hardships due to debts and money issues. Here are some effective tips for single moms from financial experts.
All Your Debts Must Be Kept Under Strict Vigilance
It is certainly a good idea to keep track of all your debts consistently. Do not ever lose track of your outstanding bills and debts. Never ignore your debts or fall behind on your payments. It is best to pull your credit report for free and examine carefully what debts are outstanding, consider recording the balance, monthly payments, interest rate, and even the due date. You must get into the habit of assessing these accounts on a regular basis. You must necessarily make a comprehensive list of all your expenses and debts.
As per https://www.wealthysinglemommy.com, “Collect statements for each and every one of your debts: credit cards, medical bills, student loans, car note, mortgage, home equity line, personal loans from your parents or cousin. My two favorite apps to help make this as simple as possible are Personal Capital and Tiller. Each of these apps automatically pulls in all your income, assets and debts.” Irrespective of what precisely your financial objectives are, it is really handy to find all these important data or numbers in one single place and witness how they make the progress towards fulfilling your financial goals gradually. You may use the Monthly Goals feature of the app Personal Capital for your convenience.
Consult with Your Creditor
If you keep track of your debts consistently, you would know exactly how much you owe currently. Once you know the outstanding debt amount, you may get in touch with your creditor or lender and discuss with him if he could provide any assistance or accommodations which could make your debt far easier and simpler to manage. All single moms who are already in financial distress must seek assistance and consideration from your lender or creditor.
In case of outstanding student loans, you may have the options for effectively dealing with these student loans because services must be able to provide you opportunities for deferring payments or forbearing or switching altogether to a separate payment plan. It is always a great idea to talk straight with your lenders and do not keep them in the dark. You may reveal your financial issues and they may offer an extension on your overall payment. Moreover, some lenders would be allowing you to miss a payment presently and tack it until the repayment period is over.
Claim Benefits, Assistance, and Support
As a single mother, it could be pretty challenging to get some concrete help. So it is mandatory on your part to claim the child support and benefits to which you are actually entitled. Federal assistance programs like WIC or Women, Infants and Children (WIC), school lunch programs, or SNAP or Supplemental Nutrition Assistance Program, and many such programs for easing your pressure and excessive stress on your monthly budget. There are some other effective programs that could be assisting you with fixed monthly expenses such as housing, health insurance, and child care. Numerous state, as well as, local programs could be offering you additional help.
Opt For Debt Consolidation
For a single mom, debt consolidation could be an effective way of managing your overwhelming debts. Debt consolidation makes a lot of sense under the circumstances as it would help in lowering your interest rates. You may opt for the credit card’s balance transfer, which is an effective way of accomplishing consolidation of debts. You may opt for a credit card offering zero percent introductory offers. You may then consider transferring balances to your new credit card and go on repaying the debt without any interest.
Another effective way of debt consolidation, if your debt balances are higher, could be a favorable fixed repayment plan using a personal loan. You could consider taking out a personal loan with a preferred rate of interest, payments, or terms and use the funds for paying off and replacing existing debts. You could use a personal loan to consolidate multiple loans so that you simply have one monthly payment and a single due date to remember every month. You must go through debt consolidation ratings before choosing the right Debt Consolidation Company or services.
Sell Your Things for Getting Money to Repay Your Debt
You may check your drawers, closets, basement, and garage. Look for spare items to be sold. Consider de-cluttering your home and selling off unused and undesirable stuff and use the cash that you get by selling these items towards prompt debt repayment. You may sell off your gold, diamond, or silver jewelry. You could sell off your old electronics, books, iPads, iPhones, DVDs, and even CDs. Moreover, now is the best time to clean up your closet. Sell off your unused handbags, clothes, shoes, and even accessories.
Conclusion
If you are a single mom, you have to shoulder the responsibilities of two people all on your own. It is but natural to encounter financial issues. You may take up a side job to earn some extra money. You could choose to be a blogger, social media manager, coder or programmer, travel consultant, and clinical research coordinator, etc. It is best to manage your debts well on time so that the new income stream could be dedicated towards investments, savings, a home, vacations, and towards fulfilling all your plausible dreams!
